deposit and first months rent upfront prior to signing tenancy agreement

janetb126

Hi All,

I was after some advice please. I have paid the application fee and have passed the referencing for a property, however I won't get the tenancy agreement until next week. The estate agent has emailed asking for the deposit and first months rent in cleared funds before move in date. I am concerned that I have been asked to pay this before I sign the agreement. Would anyone be able to tell me if this is normal practice?

rumburake

It is annoying and stressing but id does seem to be common.
I am moving this weekend, paid all fees, rent, deposit already weeks before and still didn't see the contract signed.
They insist they will sign it on the check-in date as "they only execute the tenancy in the first day".
Though I feel I was supposed to get the contract already, as I also need it for parking permits other registrations...
The LL and LA are both limited companies.

pmlindyloo

Although this is fairly common it would be sensible to ask them to email you a copy of their tenancy agreement so that you can check it through. Often this isn't signed until the move in day and then you haven't much time to check it through.

G_M

janetb126 wrote: »

Hi All,

The estate agent has emailed asking for the deposit and first months rent in cleared funds before move in date.

This seems perfectly normal and sensible.

I would never allow a tenant to move in before payment of the deposit and rent.

You say

won't get the tenancy agreement until next week.

Is that also before the move in date? Even if not, why worry? You could, in theory, move in and then decline to sign the agreement. You would have a verbal tenancy agreement, based on whatever rent and length had been discussed/agreed, and as evidenced by
a) you payment of rent and
b) the LL handing over the keys

agrinnall

G_M wrote: »

This seems perfectly normal and sensible.

I would never allow a tenant to move in before payment of the deposit and rent.

You say
Is that also before the move in date? Even if not, why worry? You could, in theory, move in and then decline to sign the agreement. You would have a verbal tenancy agreement, based on whatever rent and length had been discussed/agreed, and as evidenced by
a) you payment of rent and
b) the LL handing over the keys

So what happens if when the tenant gets the TA it contains something that they disagree with so fundamentally that they no longer want to move in? I would prefer not to hand over any money until I'd been able to do that check, it's a hell of a lot easier to hang on to the cash than try to get it back. I read my TA in the LA's office before signing it and paying the deposit and first month's rent.

mrginge

I agree (with G_M). If you haven't seen the tenancy agreement before you move in, but then when you do it contains clauses that you are not happy with, simply dispute them and refuse to sign it.

If you do this then how is the landlord going to rely on those clauses when it is perfectly clear that they were not agreed to, either at the point that the tenancy started or the point that you were shown the proposed agreement.

G_M

agrinnall wrote: »

So what happens if when the tenant gets the TA it contains something that they disagree with so fundamentally that they no longer want to move in?.

Did you read my post?

You could, in theory, move in and then decline to sign the agreement. You would have a verbal tenancy agreement, based on whatever rent and length had been discussed/agreed, and as evidenced by
a) you payment of rent and
b) the LL handing over the keys

Though I know withdraw the 'in theory' and substitute 'in practice'. No legal reason not to refuse to sign (unless the LL removes the offending clause(s)).

I only siad 'in theory' because this whole way of doing business is unusual/unlikely.

I do not believe any but the most idiotic LL would wait till after the tenancy has started to get the tenancy agreement signed.

Remember - there is no legal requirement for a written TA agreement at all.

agrinnall

G_M wrote: »

Did you read my post?

Yes. But if you re-read the OP they aren't suggesting that they should move in before they pay, but that the LL wants them to pay before moving in (which as you say is perfectly reasonable) and they want the opportunity to view and sign the TA before handing over any money. I think that's a perfectly reasonable attitude, and one that I adopt myself. I wouldn't do anything out of this sequence:

1) View property
2) Agree to take property (followed by any checks the LA/LL wishes to do)
3) Review TA and sign once happy
4) Hand over deposit and first month's rent
5) Get keys and do inventory
6) Move in

jjlandlord

Yes that would be the sensible way.

However, some landlords and agents think that withhold the written tenancy agreement until move in day somehow protects them because it, according to them, means that there is no contract until the tenant has moved in, in case something happens.

Now, it may be possible to achieve that, but you would want a solicitor to tell you exactly what to say, what to do, and what to write.
Usually, landlords/agents are not that well advise and create a contract anyway even before move in day.